As I said IF IT IS LEGAL. You piggy backed this thread and did not say where YOUR granny flat was located. Hence my statement about IF IT WAS LEGAL to rent the granny flat. If it is not legal then that is your answer. If you read the legislation it will state the rules. Probably along the lines of not renting to an unrelated party. So the same…[Read more]
Wrong! Wrong! Wrong!
This is EXACTLY why you need insurance. You don’t even know what you are liable for. Look it up. That’s why my insurance covers me for $20,000,000 Legal Liability. Even if the payout WAS refused, how much extra cash do you have to fight it in court?
If someone injures themselves on YOUR property YOU ARE liable. No one…[Read more]
If it is legal to rent out the granny flat you could rent out the main house instead. I have a friend who rents out his granny flat. He intends to move into it later in life and rent out the house.
Great idea which will bring a good income.
If you want to self manage you need to make sure you are aware of all the rules and regulations.
My only concern is tenant checks. Bad tenants target self managers as there aren’t often checks in place.
I think it’s fine if you have 1-2. It can get a bit onerous if you have multiple, but then again you are saving more on fees.
It depends on…[Read more]
What if (like your example) your tenant starts a fire and the whole complex burns down? If it’s intentional strata insurance will come after you. It’s not just your property. If your unit causes damage to other people units YOU are liable. eg the pipes (inside your unit) burst and destroy the unit below’s furniture). You are liable.
And the MAIN…[Read more]
Yes you are liable for insuring your property.
NO- It is NOT covered by Strata. Strata insurance is for building only. You need to insure everything inside the unit. If you or your tenant cause damage you are liable.
You are also liable if your tenant or a visitor injures themselves in your unit. The main reason I get landlord insurance is…[Read more]
Yes there are a lot of costs associated with property investing. When the costs are higher than the rent it’s a negatively geared property. You can claim the loss as a tax deduction.
If the property is near new or has had a major reno you will have good depreciation, which will lessen the costs out of your pocket.
Calculate carefully what the…[Read more]
If it’s positively geared the rent covers ALL the costs.
Not the P&I though. Pay Interest Only.
If you need the extra tax you will be getting you can sign a tax variation form (used to be called 221D) and then you get your tax lowered each week instead of waiting until the end of the year.
Is that what you are asking?
Why are you looking at those areas now? Vacancy rates are only part of your problem. Don’t get me wrong I love Western Sydney, and this boom has been kind to me.
We are at the peak of the boom. You are unlikely to get any capital growth for 10 years and may even get some negative growth in the next 5 years.
Not a good time to be buying there IMHO!
Who told you this? The agent. HAHAHA!! Don’t trust anything they say.
IMPORTANT!!!! Is the verandah legal?? Is it passed by council? Is it legally enclosed (I doubt it)??
If the answer is No! No! No! Council will probably ask you to remove it altogether.
Doesn’t sound like a walk in the park to me.
Blackhotel I totally agree.
Jacqui makes some good points as to why.
I have a unit in a big block and notice one agent in the area continually advertises rents cheaper than standard. I’cve pulled them up on it when they try to get my business.
As Corey said- it’s not just agents. I bought a villa and went to the first strata meeting. Got…[Read more]
Catalyst replied to the topic Completing your own tax return as a property investor in the forum Legal & Accounting 7 years, 11 months ago
You’ve answered your own question in your last paragraph.
How many deductions are you willing to miss out on to save a few hundred dollars? It isn’t difficult to fill out the form but do you want to claim all you’re entitled to. I know I do.
The thing is “you don’t know what you don’t know”.
A good accountant is worth their weight in gold.…[Read more]
Have you checked the settings? Sometimes people set the temp lower but forget to switch it from heat to cool.
If it’s on heat, no matter how low the temp is, it won’t cool.
Try that then if no luck, ring the manufacturer/installer as mentioned above.
You don’t want them to come out only to discover there’s nothing wrong with it. They will…[Read more]
Do you have another home? If not you can use the 6 year rule in which case you won’t need to pay CGT if you rent it for up to 6 yrs.
If you do rent it for longer (or you are claiming another house as your PPOR I think it just goes pro rata.
I forget which is pro rate PPOR then IP or IP then PPOR?
Maybe someone else can clarify that.
Good point Bontham and if that is the case I would be walking. If there is not a lease in place you will have LOTS of trouble trying to evict.
Check to see if there is a lease in place and if it is rented through an agent.
If it is not then walk away. I nearly bought a property like this. I walked away. Took the guy who bought it months to get…[Read more]
He’s baulking at possibly losing $600? in 2 weeks rent.
Obviously doesn’t really need the sale. He has to give 30 days notice so they’d have to be pretty organised to be out before that time.
So he says they may leave early, then he says they may be there longer as they won’t have time to move out?? Maybe you din’t pay as high as he thinks he can get??
It depends on the bank. Some will not revalue under 6 months. They don’t believe it can change that much in that time. Uneducated that they are!!! One I did I bought for land value as it was fire damaged. We spent $25K on the reno and we could have sold it for at least $90K more than we paid for it.
I’ve not had to reval early as I had enough equity.
Catalyst replied to the topic Land Tax in NSW for an investment property turning into a PPOR in the forum Help Needed! 7 years, 11 months ago
Yes. It’s payable at the same time every year based on what you own at the time.
There can be exceptions, like if you’ve sold it but not settled.
You could ring them though to ask. I doubt you’d get a refund though. Do you have another PPOR you are claiming exemption on? Are you going to give them extra to pay for that?
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